Buy Indian Bank; target of Rs 130: Dolat Capital Market
Dolat Capital Market is bullish on Indian Bank has recommended buy rating on the stock with a target price of Rs 130 in its research report dated January 22, 2021.
January 27, 2021 / 03:05 PM IST
Dolat Capital Market's research report on Indian Bank
Indian Bank reported NII and PPoP growth of 31% and 10% YoY respectively on a merged basis, in line with expectations. Pro-forma Gross NPAs were marginally higher at 10.38% against 10.2% in the previous quarter, with pro forma PCR at 69%. The bank has made provisions of 20% against standstill NPAs.
Valuing the bank at 0.7x Sep-22E P/ABV, implying a TP of Rs 130, we upgrade the stock to BUY from ACCUMULATE against a RoA of 0.6%/0.8% for FY22E/23E. The stock currently trades at 0.4x Sep22E PABV and has underperformed relative to the rest of PSU pack.
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